Ocir-café on red alert over global financial crisis impact

Once export begins, we will assess the impact quarterly and try to adjust accordingly - Ocir-café The Rwanda Coffee Development Authority (Ocir-café) is prepared to deal with any spills of the global financial crisis on coffee, the country’s leading cash crop. Alex Kanyankole, the Ocir-café Director General, said that it is still early to predict the financial crisis’ impact on this year’s coffee exports since reports are done bi-annually. “However, Rwanda is on alert to cushion the global financial crisis and its effects while seeking for alternatives,” Kanyankole stressed. “We are exploring new markets in the Middle East and thinking of how to increase on the domestic consumption of coffee as well,” he added. This follows reports that the East African coffee prices on the international market have tumbled in recent months. Fortis Investment Research also reveals that the situation has created a sense of despair among Rwandan coffee farmers. According to Fortis as global prices had risen sufficiently high to encourage Rwandan farmers to plan and prepare for a long-term perspective, Rwanda’s coffee prices fell by 23 percent since September 2008. Currently, about 99 percent of Rwanda’s coffee is consumed on the international market. The United States (US) consumes slightly above 30 percent, Europe shares 45 percent, while Africa and Asia consume about 20 percent. This means that the mostly hit economies of the US and Europe represent the biggest market share for Rwandan coffee. Kanyankole said, “Once export begins, we will access the impact quarterly and try to adjust accordingly.” With its high elevation, traditional bourbon trees, rich soils and good rainfall, Rwanda is ideal for growing high-quality coffee. The country projects about $60 million this year from 28,000 tonnes of coffee. To meet the projection in production and revenue, more efforts are targeted to meet the projected output and revenues. For example, 10,000 tonnes of fertilizers and 55,000 litres of pesticides will be distributed to farmers to increase their coffee trees productivity. Last year, 22,000 tonnes of coffee were produced, contributing close to 20 percent of the foreign exchange revenue with US$46 million (Rwf25.9 billion). Ends

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Ocir-café on red alert over global financial crisis impact